Valuations

We have performed more than a thousand valuations of banks and bank holding companies across the United States. The reasons for valuations vary — from ESOPs and shareholder agreements to tax and estate planning, mergers & acquisitions, goodwill impairment testing in accordance with FASB 142, and stock offerings. In all these situations, the valuation is of little use unless it is clear, credible, and based on solid market and financial data.

While many valuation methodologies exist, we believe no single method is sufficient or even applicable to every situation. We understand the theory behind valuing bank stocks and take great pains to select the appropriate methods for a given bank.

In addition, we stay current on the latest rulings from the IRS and the Comptroller of the Currency and on judicial decisions affecting bank stock.

When we perform a valuation, a process that typically requires twenty to twenty-five business days, we produce a written document that reflects a bank’s uniqueness along with the particular circumstances surrounding the appraisal.

“Over the past 15 years, The Bank Advisory Group has consulted with our bank for multiple purposes, including bank acquisitions, stock repurchases, and ESOP valuations. The negotiating and structuring experience has been invaluable, and the stock valuations are so detailed that they are virtually unassailable. I have absolute confidence in The Bank Advisory Group. I wouldn’t consider going to anybody else.”

Frank Morris, Chairman and CEO // First State Bank, Gainesville, Texas // $676 million total assets

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